Business in Vancouver has an article predicting that the BC Foreign buyer tax will hurt blue collar immigrant workers in the Fraser Valley, which is weird because we were under the impression that the tax was on the Metro Vancouver area and the valley was exempt:
Rob Philipp, chief executive officer for the Fraser Valley Real Estate Board (FVREB), said that while the new tax is aimed at high-end buyers, it’s only going to hurt the working-class immigrants who are trying to move to the region. He called the Fraser Valley’s immigrant population “the engine that drives us.”
“The people who are buying on the west side of Vancouver, they don’t really care about an extra 15% tax. If you’re buying two-, three- or four-million-dollar homes, they want into the market regardless.”
Philipp said the new tax also dampens the incentive for skilled out-of-country workers to settle in the region.
“As a province we’re trying to recruit really specialized professionals – doctors, nurses, certain types of engineers,” he said. “And those are people who are spending $800,000 to buy a place out here and now they’re thinking, ‘Well, I have to spend another $120,000. I’m not going to do it.’”
The other odd thing is that if skilled out-of-country workers actually ‘settle in the region’ and file a Canadian tax return they are exempt from the foreign buyer tax, so we’re curious how it would dampen incentives to move here any more than paying $800k for a house out in the Valley would.
Read the full article here and please correct us if we are mistaken about how the foreign buyer tax actually works.
Remember when rising prices in Vancouver were bringing up national averages? It seems times have changed, now the numbers out of Vancouver and the Fraser Valley are so bad they’re dragging down the rest of the province:
The total value of homes sold in B.C. dropped by nearly one-quarter in November, with declines in Vancouver and the Fraser Valley leading the slide.
The dollar volume of homes sold through the Multiple Listing Service in B.C. declined 24.6 per cent to $2.3 billion in November compared with the same month last year, the B.C. Real Estate Association reported Thursday.
But don’t worry, the BCREA expects prices to start going back up next year.. hey, that’s less than a month away!
Cameron Muir, BCREA’s chief economist, said that tighter mortgage rules introduced this summer had squeezed some buyers out of the market, but he expects sales to go up in 2013.
“When I suggest that we’re going to see an increase in sales levels next year, it doesn’t mean we’re going to return to the heady days before the recession. But the longer we see sales levels fall below the long-term average, the more likely we’re going to see pent-up demand (grow) in the marketplace, which may contribute to increased sales activity in 2013,” Muir said.
The number of units sold this November was down 17 per cent in the province from November 2011 to 4,680, while the average price was down 9.1 per cent to $480,891.
Read the full article in the Vancouver Sun.
An Observer has started up a new Vancouver RE blog focused specifically on tracking price drops!
Right now at vancouverpricedrop you’ll find number of asking price drops by area and a ‘top eleven’ list of price drops in the Vancouver and Fraser Valley region.
These drops are all over the map, some have dropped asking price by a million and are still a million over assesment. There are a couple that seem serious though with new asking prices several hundred thousand dollars under assessed value.
It’s fantastic to see a new addition to the Vancouver bubble blog crowd, especially one that is focused on specific data. Looking forward to watching this one in the future!
Here’s that link again: vancouverpricedrop.wordpress.com